Bill Smith opened Smith Construction on April 1, 2010. The following amounts summarize the transactions and financial position of Smith construction as of May 31.
During May the following transactions occurred:
1-May Smith received $10,000 as an inheritance and used it to buy stock in the company.
7-May Smith paid his accounts payable balance.
15-May Smith replaced some windows for a client and received $5,000 cash for his services
17-May Smith collected $1,200 from a customer for a job performed in April
20-May Smith purchased supplies for $1,000 on account
24-May Smith gave a bid to a customer and billed the customer for the services performed $800
25-May Smith sold $5,000 of company stock to his brother
28-May Smith paid wages to his workers of $1,800
30-May Smith paid office rent of $1,000
30-May Smith paid dividends to himself of $1,400
Requirements:
1. Enter the transactions for May into the accounting equation, calculating new balances after each entry.
2. Prepare the Income Statement for the month of May for Smith Construction.
3. Prepare the Statement of Retained Earnings for Smith Construction for the Month of May.
4. Prepare the Balance Sheet for Smith Construction as of May 31, 2010.